Presentation on theme: "THE RELEVANCE OF EVENTS MANAGEMENT IN BOOSTING NIGERIAN ECONOMY PRESENT BY CHIEF C. OBIA DIRECTOR, HOSPITALITY MANAGEMENT, NIHTOUR, ABUJA AT THE 1 ST NATIONAL."— Presentation transcript:
THE RELEVANCE OF EVENTS MANAGEMENT IN BOOSTING NIGERIAN ECONOMY PRESENT BY CHIEF C. OBIA DIRECTOR, HOSPITALITY MANAGEMENT, NIHTOUR, ABUJA AT THE 1 ST NATIONAL CONFERENCE ON EVENTS MANAGEMENT ABUJA, NIGERIA. THEME: HARNESSING THE POWER OF EVENTS MANAGEMENT IN NATION BUILDING AT: SHERATON HOTEL & TOWERS, ABUJA 11 TH MARCH, 2014
THE RELEVANCE OF EVENTS MANAGEMENT TO THE NATIONAL ECONOMY 1.0 Background Events Management is an activity that is currently on an upwardly increasing development and sophistication. It is an aspect of the tourism and hospitality industry which is the business of providing accommodation, food, entertainment and other cares for people who are moving from one place to the other. The recent growth of festival events as an industry globally means that the management should be comprehensively planned.
Tourism activities/pursuit is as old as humanity. Nigeria first gave recognition to it in 1962 when the United Nations World Tourism Organisation (UNWTO) report on international tourism trends in the country indicated that 6,120 international tourist arrivals were recorded. By 1998, arrivals rose to 640,000 generating over US$129 Million. This figure has been increasing progressively. It has been taunted that tourism is capable of taking over form the oil and gas sector as a leading revenue earner for Nigeria, according to the World Travel and Tourism Council (WTTC).
The creation of a Ministry of Tourism, Culture and National Orientation and the appointment of a Cabinet Minister since 1999 is an indication of the strong interest of Nigeria government in tourism development. This has also positioned Tourism and Event Management as the main thrust and effective tool for further diversification for the economy and poverty reduction, Socio-political co-existence and understanding among Nigerians as well as international relations and indeed, the harmonization of the black race and culture (National Tourism Policy, 2005).
In pursuing the above initiative a National Tourism Master Plan was produced with the assistance of the United Nation World Tourism Development Programme (UNDP) and the United Nations Organisation (UNWTO) in 2006. This step, according to Adejuwon (2006) is the evidence that Nigeria is ready to put tourism in focus and provide the necessary roadmap for the planning and development of the industry. The tourism master plan recommends that Nigeria adopt a clear identifiable positioning as a cultural and regional conference destination in the tourism market place.
To this, it recommended five clusters for tourism development in the country including a conference capital cluster covering conference facilities in Abuja along with recreational, cultural, and man-made attractions in the Federal Capital Territory, Niger, Nassarawa, Kaduna and Kogi States. Events and festival tourism is one of the fastest growing forms of tourism. It is becoming increasingly popular in our country as a means of revitalizing local economies. The Nigerian event industry presents an opportunity for Nigeria to be a global business destination of choice in Africa and at the same time, create real growth for Nigeria events by generating business opportunities for local firms leading to the formation of vital international business and research networks.
When international events take place in a country, the world will watch but the legacy will remain. By attracting events from around the world, delegates not only bring economic benefits vital to the economy, they also bring global leaders and investors to discuss, debate, learn, and share ideas. They engage with our leaders and institutions in particular fields leaving behind an invaluable legacy knowledge and establishing relationships that will last for decades. The aim of this paper therefore is to briefly examine the event industry and its impact on the National Economy.
2.0 The Event Industry Events can range from a one or two day religious or sporting event (eg Church Retreat or School Sports Festival) to a month long festival (eg National Universities Games – NUGA), Calabar Festival, etc. The types and character of visitors to these events can vary greatly. Type of events and the market attracted to it have different economic impacts
Leisure events (Leisure, Sport, Recreations) Personal Events (Wedding, Birthdays, Anniversary) SPECIAL EVENTS Leisure events (Leisure, Sport, Recreations) Organizational Events (Commercial Political) Charitable Sales Classes of Events Two types of classification are featured below: *Table: 1 Shone and Parry classification (Shone and Parry: 2004)
This classification by Shone and Parry (2004) presented on table 1 above was meant to show the basic understanding of the breadth and variety of events. While Getz (1997) classification included more details within business and travel events and also indentifies educational and scientific events. All events are unique and it is this uniqueness that makes them special and creates a challenge for the organisations.
Cultural Celebrations Festivals Religious Events Parades Heritage Commemorations Art/Entertainment Concert Other Performances Exhibits Award Ceremonies Sport Competitions Professional Amateur Educational and Scientific Seminar Congresses Interpretive events Recreational Games and Sports Amusement event Political/State Inaugurations VIP Visits Rallies Private Event Personal Celebrations: Anniversaries Family holidays Rites of passage Social events Parties Reunions Business/Trade: Fairs, markets, sales Consumer and trade shows Expositions Meetings/conference Publicity events Fundraiser events Table II Getz’s (1997) classification of events,
Characteristics of Events There are four different characteristics of events that are important to an event organizer. They are; Size and volume of output Uncertainty of numbers attending, cost, time schedule and technical requirements. Complexity and variety of services/products offered to the consumer. Interaction with the consumer, and degree of consumer and customer contact.
3.0Event Management Event Management is the application of project management principles to the creation and development of festivals, events and conferences. According to Ransburg et al (2008), it involves: Studying the intricacies of the brand; Identifying the target audience Devising the event concept Planning logistics and coordinating the technical aspects before actually launching the event. Post-event analysis and ensuring a return on investment.
The industry now includes events of all sizes from Olympics games down to a breakfast meeting for ten business people. Many industries, charitable organizations and interest groups hold events of different sizes in order to market themselves, build business relationships, raise money or celebrate.
Impacts of Event Management Events do not take place in a vacuum they touch almost every aspect of our lives whether they are social, cultural, economic, environmental or political aspects. The popularity and support of events are rising because of the benefits of the industry. Events have a large range of inputs to the National Economy as is summarized below. Income/revenue generation Economic development Infrastructural development Promotes peaceful coexistence and international relations employment generation Investment or development of the private sector Communication tool
Income/Revenue generation is one of the most impacts of events. Obia (2009) noted that one of the impacts of event is income generation. Income is generated from wages and salaries, interest, rents and profits. In a labour intensive industry such as event the greatest proportion is likely to be in wages and salaries. Tax paid on event facilities contributed largely to the country’s economy. In another enumeration of the impact of events by Hall, 1992, they were separated into positive and negative aspects.
TYPE OF IMPACT POSITIVENEGATIVE Economic Increase expenditure Creation of employment Increase in labour supply Increase in standard of living Price increase during event Real estate speculation Failure of attract tourists Better alternative investments Inadequate capital Inadequate estimation of costs of events Tourism/Commercial Increased awareness of the region as a travel/tourism destination Increased knowledge concerning the potential for investment and commercial activity in the region Creation of new accommodation and tourist attractions Increase in accessibility Acquisition of a poor reputation as a result of inadequate facilities, improper practices or inflated prices Negative reactions from existing enterprises due to the possibility of new competition for local manpower and government assistance These positive and negative impacts are tabulated below;
Physical/Environmental Construction of new facilities Improvement of local infrastructure Preservation of heritage Ecological damage Changes in natural processes Architectural pollution Destruction of heritage Overcrowding Social/Cultural Increase in permanent level of local interest and participation in types of activity associated with event Strengthening of regional values and traditions Commercialization of activities which may be of a personal or private nature Modification of nature of event or activity to accommodate tourism Potential increase in crime Changes in community structure Social dislocation. These positive and negative impacts are tabulated below; (cont)
Psychological Increased local pride and community spirit Increased awareness of non-local perceptions Tendency toward defensive attitudes concerning host region Culture shock Misunderstanding leading to varying degrees of host/visitor hostility Political/Administrative Enhanced international recognition of region and values Development of skills among planners Economic exploitation of local population to satisfy ambitions of political elite Distortion of true nature of event to reflect elite values Failure to cope Inability to achieve aims Increase in administrative costs use of event to legitimate unpopular decisions Legitimate of ideology and socio-cultural reality
One notable aspect of events is the multiplier effect of the impacts. This is portrayed in the United States of America as stated by Sanders (2011) that 1.8 million meetings and events take place annually attracting about 205 million participants and accommodation of 250 million overnight stays for both American and International attendees. Participants in these events include 25 million organizers 16 million delegates, 18 million exhibitors, staff and members of the press or other attendees.
The 1.8 million meetings and events contribute $4.3 billion in federal tax revenue. These figures excludes N907 billion from indirect and induced spending generating $64 billion in federal tax revenue and $46 billion in state and local tax revenue.
The beneficial aspects of these events far outweigh the negative aspects. Nigeria is an expanding event destination but some challenges have to be surmounted mainly by cooperation or partnership of industry stake holders and government based on the mutual desire for significant growth. The private sector should be encouraged to be the pivot on which this anticipated growth and development should stand. Thank you.